How Can You Buy and Resell on Amazon

I don’t hide that Amazon is my #1 supplier for my FBA business, so it isn’t surprising that one of the most common questions I get is this:

How is it possible to buy from Amazon and resell on Amazon?  

I understand where this question is coming from.  It simply doesn’t make sense that you should be able to buy from the exact same platform that you sell on.  How would you ever make any money?  That’s a question I hope to tackle with this post. In my next post, I’ll explain why I prefer to source from Amazon.

There are at least 3 different ways to profitably buy on Amazon to resell on Amazon (Az2Az for short):
1  Amazon often has inexplicable price drops of up to 85-90% off, only to return to their previous price within a day or so.  As an example, consider this item:

pricedrop
This is a chart using the Keepa Chrome extension.

 

Chris posted this earlier today on our Facebook Page.  As you can see, the price has been in the $150 range for quite some time.  Then, for no reason, they decided to sell at $65, at which point they promptly sold out.  Now the third-party sellers are all selling at $150+.  Since this has nearly 2 years history of selling at $150, we can be pretty sure that is approximately the price we can get for it.  At this rate, we stand to make between $60-$70 dollars off of this one item.  The logic is simple, buy Amazon’s ridiculous price drops and then sell at their normal price point.

 

2  Sometimes Amazon is always at a low price, but when they run out, the price skyrockets.  The perfect example for this type of product is the Revlon Perfect Style Thermal Round Brush.

revlonbrush

When Amazon is in stock, they always sell this brush for $0.99.  However, they can’t keep them in stock at this price and so they sell out frequently.  Look what happens to the price when they sell out?  I’ve sold this brush over and over for $9-$10.

 

3  Sometimes we need to do a little bit of work.  This can be in the form of creating bundles, creating multi-packs, or unpacking something Amazon has sold as a multi-pack.  My favorite is the final option: Unpacking something that Amazon has sold as a multi-pack.  You would be amazed at how often Amazon sells a case of 12 items for the same price as they sell a 3pk.  (Pro Tip: Pay special attention to items where the average consumer has absolutely no need for 12!).

Case of 12 for $58
Case of 12 for $58

 

 

Here is one of my favorite examples!  I bought this case of 12 for $58.  I was banking on the fact that most people couldn’t go through 12 containers of 23.5oz of Garlic and Herb spice in their entire life.  Sure enough, I was able to sell out at $23.49 each.  That means I bought for just under $5.00 each and I sold it for almost 5 times as much as I paid for it.

 

 

 

These aren’t the only ways to make money doing AZ2AZ (and if you’d like to add any, leave a comment!), but they are three of my favorite and help illustrate the concept that you absolutely can make money by buying and selling on Amazon.

As always, Best Wishes!
-Mike

Disclaimer: Amazon Prime Terms and Conditions prohibit using any prime benefits for the purpose of resale.  So, if you want to employ any of the previous methods, you should have a non-prime account that you use to source with.  You can still get free shipping at $35 or you can do what I did and sign up for the Business Account for free and get free 2-day shipping on carts that are $49+.

29 thoughts on “How Can You Buy and Resell on Amazon

  • June 29, 2015 at 5:08 pm
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    Excellent information.

    Reply
  • August 3, 2015 at 10:26 pm
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    Hi mike amazing article I was wondering If I could get some more info and guide for buying and reselling on Amazon as I think this seems to be an awesome strategy can we discuss by Skype or any other way thanx

    Reply
    • August 4, 2015 at 8:42 am
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      Hi Tahir,

      I have a whole series planned for this, but if you have any specific questions, please let me know so I can make sure that I answer them all throughout the course of the series.

      Best wishes,
      mike

      Reply
      • August 4, 2015 at 8:51 am
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        Hi mike thankyou for the response I am completely clueless to the whole thing firstly do I need two accounts secondly when picking products do I need to check ranks per category and try picking the top 3 to 10% thirdly you mentioned in a article that you need to keep an eye on CCC for price drops how often do the prices rise again so that we can get better profits also buying bundles to unpack and selling them in singles does that work and finally do you have a video or a short course that teaches this method thankyou and sorry for the multiple questions

        Reply
        • August 4, 2015 at 4:06 pm
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          1) Do you need 2 accounts for what? You can only have 1 selling account without permission. Buying accounts are separate from selling accounts, so in that sense, you always have at least two accounts, even if you use the same email. If you have Prime, then you should have a second buying account without prime. If you don’t have prime, then you’re fine.
          2) Yeah, you should definitely consider rank. I can’t give a hard and fast rule that applies to each category, but 3% is probably an okay guide.
          3) Well I can’t predict how fast Amazon is going to sell out and what future price movements are going to do. But, if you find products that have dropped before, then you can look in Keepa and see how long they stayed at the low price versus how long they were at the higher price.
          4) Yes, unbundling definitely works. I don’t think I have a video that specifically touches that, but I can probably try to write an article. Actually, come to think of it, I believe I do have an article coming on unbundling.

          Reply
  • August 6, 2015 at 7:57 am
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    Hi Mike,

    great article! i am doing 100% OA and wondering if it’s going to be a problem if both buying/selling accounts using the same shipping address? in my case, my prep warehouse in US?

    Thanks,
    Jerry

    Reply
    • August 6, 2015 at 2:13 pm
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      No. Reselling is permitted, you are just not permitted to use any prime benefits.

      Reply
  • August 9, 2015 at 1:17 am
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    Great post. I really appreciate. I have a question.

    Are there any further information that you can give sellers from outside US? I live in Asia and want to get margins with this reselling method. I want to ask what should I do in this case. Is it impossible to use this reselling strategy? Thank you.

    Reply
  • August 29, 2015 at 4:57 pm
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    I have a pro seller account with prime. From what I understand I need a seperate buyer account to do az2az. So I must set up a seperate buyer account under a different email, correct?

    Reply
    • August 29, 2015 at 7:07 pm
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      Dave,
      Yes, you can’t use any prime benefits for Az2Az flips, so you should have a second account set up for purchases to resell. If you’d like, you can choose to set it up as a business account and get free 2 day shipping on carts over $49 or you can just have a normal account and you’ll get free standard shipping on carts over $35. Your choice.

      Reply
      • August 29, 2015 at 7:33 pm
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        Thanks so much!

        Reply
  • September 2, 2015 at 8:57 am
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    My wife has a prime account. Can she buy products that I can resell? We live at the same address but I don’t see anything against those rules. Has anyone done this?

    Reply
    • September 2, 2015 at 9:00 am
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      No this cannot be done. Eventually you will be caught and best case scenario is your wife loses her $99 prime account without a refund.

      Reply
      • September 2, 2015 at 12:54 pm
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        I believe 2 accounts from the same I.P. address is viewed by Amazon as a shared account.

        Reply
  • September 2, 2015 at 2:26 pm
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    If I buy a merchant-fulfilled book on Amazon, can I then resell it on FBA with the same account? Am I correct in assuming that since merchant-fulfilled doesn’t use Prime benefits, that would be kosher?

    Reply
    • September 2, 2015 at 3:12 pm
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      Yes you may. It’s still a good idea to have a completely separate account that is for purchasing (one that doesn’t have Prime), but as long as you aren’t using any prime benefits (which you aren’t if you’re buying MF), then you aren’t breaking any rules.

      Reply
      • September 2, 2015 at 3:16 pm
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        Appreciate it – thank you!

        Reply
  • September 14, 2015 at 6:31 am
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    I must say i had a pretty verbal “pfffft…” reaction when i read through this article.
    Especially the part where you suggest unpacking multipacks , thats blew me off the chair right away, nice work man.

    See, a post like this could only prove , a non experienced seller could not be writing
    these stuff. priceless info man … thanks

    Have a great week everybody !

    Reply
  • September 17, 2015 at 9:18 pm
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    Is there a way to sign up for deals or alerts to know when items get drastically reduced on Amazon? Otherwise, how do you know that the price you’re looking at isn’t the normal price or how would you go about finding these gems? Thanks!

    Reply
  • September 27, 2015 at 8:20 pm
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    Hi

    Great content. For someone like me outside USA(in Australia), can the goods be sent directly to the Amazon warehouse for FBA via my FBA account?

    Cheers

    Reply
    • September 28, 2015 at 6:06 am
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      If your supplier with prep the products the way Amazon requires and coordinate with you to send to the right place with the right labels, then it is possible, but usually they won’t do this. However, there are prep and ship companies in the US, where you can have your merchandise shipped to. They will prepare it how Amazon demands and then send to AZ warehouses. They charge a fee, but it is usually reasonable.

      Reply
  • November 30, 2015 at 9:21 am
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    Hi Mike,

    We are a computer repair business operating in US & Canada. We now plan to resell laptops, desktops, printer and software to our customers. They always call us for consultation before buying computer hardware and software. We end up sourcing best deals for them.

    I would appreciate if you could answer the following for me:

    1) Can I buy products from Amazon and have amazon fulfill them for me?
    2) I don’t want to maintain a inventory – will fulfill as per customer needs
    3) Can I make some kind of online catalog where customers can see prices of products and specification? We only want to list best priced and best configured products.
    4) we already have an EIN and service customers Nationally.

    Thanks,
    Abby

    Reply
  • January 17, 2016 at 4:44 am
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    Hi Mike,

    You mentioned that you would be doing a whole series on this. Is this up already? if so, pls point us to it. If not, would this be anything soon? Looking forward to it.

    Thanks

    Ann

    Reply
  • March 9, 2016 at 12:26 pm
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    I really like the idea of buying from Amazon to sell on Amazon. I am confused about your example, did you sell a little bottle of spices for a whopping $23.49 EACH? I am amazed that folks would pay that much.

    Reply
    • March 9, 2016 at 2:40 pm
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      It’s not a little bottle of spice — it’s 23+ oz, which is a lot of spice — restaurant size. But yes, I sold them for 23.49 each.

      Reply
  • July 5, 2016 at 9:56 am
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    hello all, i got an email from Amazon!!! Please help me with my questions below, thank you in advance for your help!

    Hello,

    We’re writing to you because we have concerns regarding the ordering behavior on your Amazon.com account with an Amazon Prime membership. The shipping activity by you or your invitees is similar to patterns we’ve seen when Amazon Prime is used for reselling (as described in our Terms & Conditions).

    This e-mail is a courtesy notice, and no action is being taken at this time. We encourage you to continue using your Amazon Prime Membership according to our Terms and Conditions, which you can view here:

    http://www.amazon.com/gp/help/customer/display.html?nodeId=13819201

    If future activity on your account continues to follow a pattern consistent with reselling or shipping to customers, we may terminate your membership without refund and without further warning.

    If you think you received this message in error, or would like to clarify the order activity, please contact us directly at pai@amazon.com.

    We appreciate your cooperation and understanding.

    Best regards,

    Account Specialist.

    I have a few questions, any help is deeply appreciated!!

    1) I have only 1 buyer account and I sent items to my customers. I just cancelled my prime membership on that account (that I got the above email on) but it is effective only later this month. I just opened a new amazon buyer account with no prime membership. Can I continue today do what I do, that is buying on amazon with my new buyer account, and having those items sent as gifts to my clients, but with this new separate amazon.com non-prime membership? I don’t mind having to pay for shipping if need be! Is it allowed?

    2) Should I reply to that email above saying I cancelled my prime membership and tell them I am using amazon to ship items straight to my clients and that I intend to continue doing do when my prime membership benefits expire?

    3) When my prime membership expires on my first account that I got the email on, should I continue to use that account or should I just use this new 2nd account I opened today with non-prime membership?

    Reply
  • October 29, 2016 at 12:43 pm
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    Thanks for your informative blog. I am new and just started to interested with this kind of business.
    I have questions before starting, is it possible to buy on amazon and resale on amazon without delivering/shipping? I mean to buy something on amazon and keep it in amazon warehouse without shipping and sell that thing after two months directly from amazon warehouse. do they charge for that?…
    Also I am from Kyrgyzstan and can I register on amazon or ebay as a seller?… Sorry for my english.
    Thanks and best regards.
    Melisbek

    Reply
  • November 29, 2016 at 10:40 am
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    hello mike please help i need work in upwork but i can,t undersatnd how to buy and resell produect in amazone please please maake a video and give me your skype
    my skype id is noreen.ahmed960

    Reply
  • December 11, 2016 at 12:12 pm
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    I am an amazon sell and have another non prime account I use for my aztoaz fills. I purchase inventory from AZ and resell on AZ, do you know if I could purchase “deals of the day” and resell on AZ?.
    I know you can’t purchase “lightening deals” and use prime memberships to resell on AZ.

    Reply

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